What is Mortgage Protection?
Mortgage Protection – what is it?
Mortgage Protection is the most basic form of Life Insurance. It is designed to pay off any outstanding amounts on a mortgage should either a borrower or joint borrower were to die during the loan term. In the majority of cases, lenders are legally obliged to ensure that a mortgage protection policy is in place before the loan cheque is issued. However, there are exceptions which are outlined below:
- You are over the age of 50 at the time of getting a mortgage
- The mortgage is not on your principal residence i.e. your own home
- You cannot get cover for Mortgage Protection or can only get covered at a very high premium
- You already have a sufficient Life Insurance policy in place that would pay off the loan should you die.
A pay out will be made provided you make timely mortgage repayments and your mortgage interest rate has not, on average, exceeded the interest rate assumed. Cover is available on either a single life or joint life basis and the premium is guaranteed throughout the term of the policy.
As you pay off your mortgage, the cost of cover will also decrease to reflect the ever decreasing amount outstanding. Therefore, Mortgage Protection is generally cheaper than other forms of Life Insurance. If you are looking for advice on Mortgage Protection, keep it simple: call one of SimplyInsure.ie’s Life Insurance advisors today on 1890 746 759 or e-mail us on firstname.lastname@example.org to request a call back.